California Middle Class Scholarship: How it works

California has created a Middle Class Scholarship for its public university students. It goes into effect in 2014 and the funding ramps up each year until 2017.

Who qualifies: UC and Cal State students with family incomes of $150,000 or less and at least a C average. The program is for those who are not eligible for Cal Grants.

To enroll: Apply the same way you would for a federal loan, using the Free Application for Federal Student Aid (FAFSA). It has a March 2 deadline and must be resubmitted every year of college.

Scholarship amount: The discount on systemwide tuition and fees (campus fees and room and board are not included) will range from 10 to 40 percent when the program is in full effect in 2017. Until then, the rates will be lower.

Sliding scale: For families with incomes of $100,000 or less, the maximum systemwide tuition discount is 40 percent. For those earning $125,000, it's 25 percent. The discount drops by 0.6 percentage points for every $1,000 in income above $100,000.

State funding: $107 million in 2014; $152 million in 2015; $228 million in 2016; $305 million in 2017

Funding caveat: If a state has a budget deficit, funding for the scholarship can be reduced by one-third.